On December 4, 2025, US stocks closed mixed as market participants focused on the upcoming Federal Reserve's policy meeting, which is expected to signal a rate cut. The Dow Jones Industrial Average (^DJI) decreased by nearly 0.1%, closing at 34,250 points. In contrast, the S&P 500 (^GSPC) slightly rose by 0.1% to finish at 4,550 points, while the Nasdaq Composite (^IXIC) gained about 0.2%, settling at 14,250 points.
The anticipated rate cut is driven by recent labor market data indicating uneven signals. The initial jobless claims fell to a three-year low of 191,000 in the week ending November 29, contrary to a report showing 71,321 job cuts announced in November, the highest for that month since 2022. These conflicting signals suggest a cooling labor market, reinforcing expectations for the Fed to ease monetary policy during its meeting on December 10.
The technology sector saw some significant movements, particularly Meta Platforms (META), whose stock surged by over 4% after reports emerged about CEO Mark Zuckerberg planning cuts to its money-losing metaverse division. Nvidia (NVDA), a leader in AI chips, also saw shares rise by approximately 2% following favorable public comments from CEO Jensen Huang.
Conversely, Kroger (KR) experienced a challenging day, with shares dropping around 3% after reporting revenue that missed analysts' expectations despite posting a slight earnings per share beat. The grocery chain's third-quarter revenue totalled $33.9 billion, flat year-over-year, illustrating tough comparisons in a competitive environment.
Labor market data was at the forefront of traders' minds today. The Challenger Job Cuts report highlighted a jump in layoffs, contributing to a mixed economic outlook. Meanwhile, the ADP National Employment report, released earlier this week, indicated that private sector payrolls dropped by 32,000 positions in November, amplifying the case for the Fed to cut rates.
The market anticipates an 87% probability of a 25-basis-point rate reduction at the Fed's upcoming meeting, further supporting trends towards cheaper borrowing costs which is particularly beneficial for smaller companies as reflected by the Russell 2000 index's gain of about 0.7%, marking its seventh record close this year.
Investors today navigated a mixed bag of economic indicators amid rising concerns about the labor market's stability and persistent inflation. Stock futures had indicated a positive start earlier, but classic volatility was observed as traders adjusted to the shifting economic landscape. With crucial economic reports due before the Fed meeting, market sentiment remains cautiously optimistic as participants anticipate guidance from central bank officials.